TNAG-0743-FCO40-947-Relations-between-China-and-Hong-Kong-1978 — Page 221

CONFIDENTIAL

4. AFTER THESE RELATIVELY SET PIECE ANALYSES A LIVELY DISCUSSION

ENSUED. DR OWEN AGREED WITH MUCH OF HUANG'S ANALYSIS BUT DI SAGREED

WITH HIS PESSIMISTIC INTERPRETATION. HE DID NOT ACCEPT THAT THE U

WAS ON THE DEFENSIVE, AND DEFENDED THE WEST'S POLICIES IN AFRICA. THE AREA INCLUDING AFRICA, AFGHANISTAN, INDIA AND IRAN WAS OF CONSIDERABLE CONCERN TO THE UK, IN DISPUTING THE SOVIET UNION'S BASIS PHILOSOPHY (EG ON HUMAN RIGHTS) THE WEST WAS TAKING THE OFFENSIVE.

5. DURING THE COURTESY CALL ON MR VARLEY HUANG HUA RENEWED THE

INVITATION EXTENDED BY TANG KE FOR MR VARLEY TO VISIT CHINA. MR

VARLEY SAID HE DID NOT KNOW WHETHER HE WOULD BE ABLE TO GO NEXT

YEAR: HE WOULD IF HE COULD. MR VARLEY SAID THAT WE NEEDED TO WORK OUT DURABLE ARRANGEMENTS FOR CONSOLIDATING OUR TRADE RELATIONS, AND

HE HOPED WE COULD DISCUSS FUTURE CHINESE SUPPLY OF RAW MATERIAL S

TO THE UK.

6. WE UNDERSTAND THAT NO POINTS OF SUBSTANCE AROSE DURING THE CALL

ON THE CHANCELLOR OF THE EXCHEQUER.

7. MAIN POINTS OF THE CALL ON THE PRIME MINISTER WERE:-

(1) (11)

(111)

THE PRIME MINISTER INVITED CHAIRMAN HUA TO THE UK.

HUANG RENEWED THE INVITATION TO THE PRIME MINISTER TO VISIT

CHINA. THE PRIME MINISTER SAID THAT HE WOULD GO WHEN HE

COULD.

A DISCUSSION ON DETENTE FOLLOWED BROADLY THE SAME LINES .AS

THE DISCUSSION WITH DR OWEN.

(IV) REFERRING TO THE VISIT BY WANG CHEN, HUANG SAID THAT WANG

WAS IN CHARGE OF MILITARY EQUIPMENT. THE PRIME MINISTER

SAID WE WERE ALREADY DOING QUITE WELL IN THAT FIELD, AND HAD REACHED THE STAGE OF CONTRACT NEGOTIATIONS FOR MARINE GAS TURBINES. HUANG SAID CHINA WAS NOT SUGGESTING A MILITARY ALLIANCE BUT WANTED TRADE AND ECONOMIC CO-OPERATION. SOME

SOVIET REACTION MUST BE EXPECTED: CF CHAIRMAN HUA'S VISIT

TO EASTERN EUROPE.

(V)

THE PRIME MINISTER ASKED IF THE CHINESE WERE SATISFIED WITH OUR RELATIONS OVER HONG KONG. HUANG SAID THERE WAS GOOD

PRACTICAL CO-OPERATION. THE UK KNEW CHINESE VIEWS ON THE WIDER ISSUES. IT WAS A PROBLEM LEFT OVER FROM HISTORY WHICH

WOULD BE SOLVED IN DUE COURSE BY NEGOTIATIONS.

OWEN

FILES FED

PS

PS/LORD GORONWY ROBERTS

PS/PUS

HK & GD DESD

SIR A DUFF

MR CORTAZZI

MR MURRAY

2

CONFIDENTIAL

!

དྷྭ་